France introduces taxes that could aid the adoption of renewable energy

Renewable energy transition may be accelerated with the help of taxation

France has revealed a new plan to introduce taxes on nuclear energy and emissions produced by fossil-fuels. The measure is meant to accelerate the country’s adoption of renewable energy and strengthen the country’s environmental and economic standing. Like other European countries, France has shown a strong interest in renewable energy, primarily for its economic merits. The country is currently undergoing an energy transition and has been investing heavily in clean technology in the hopes of phasing out its use of fossil-fuels in the near future.

Taxes could raise $5.4 billion

The tax on nuclear energy could potential affect the 58 nuclear power facilities that are managed by Electricite de France. These facilities account for three quarters of the country’s energy supply. This tax would be introduced in full force and take effect in 2016. The tax on carbon emissions would be introduced through a series of phases in order to mitigate its financial impact. Together, the taxes could raise as much as $5.4 billion when they become active in 2016. The taxes could also provide a financial incentive for companies to begin embracing renewable energy.

France begins looking for alternatives to nuclear power

France has long been a prominent supporter of nuclear power, but the country has been growing more concerned over the technical difficulties of operating nuclear energy facilities and the potential danger these energy systems represent in times of natural disaster. Neighboring Germany has been making an aggressive move away from nuclear energy, partly due to the nuclear crisis sparked by the 2011 Fukushima disaster in Japan. France and Germany have been working together to promote renewable energy in recent years and the two countries are beginning to adopt very similar energy policies.

French nuclear facilities make excessive profit

The tax on nuclear power is not only meant to encourage more focus on renewable energy. Nuclear facilities throughout the country make extraordinary profit because the government absolved the financing it provided for the construction of these energy systems in the 1970’s and 1980’s. The government believes that the tax on nuclear power will not be a significant financial burden for the energy companies responsible for the country’s nuclear facilities.